Question: If the cost object is an airplane, classify each cost as one of the following: direct materials (DM), direct labour (DL), indirect labour (IL), indirect
If the cost object is an airplane, classify each cost as one of the following: direct materials (DM), direct labour (DL), indirect labour (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost?
Start by classifying each cost, and then calculate the total for each type of cost. (Enter amounts in thousands as provided in the problem statement. Leave any unused cells blank. Do not enter "0".)
| DM | DL | IM | IL | Other MOH | Period | ||
| a. | Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . . . . . | DM | |||||
| b. | Depreciation on administrative offices. . . . . . . . . | PERIOD | |||||
| c. | Assembly workers' wages. . . . . . . . . . . . . . . . . . . | DL | |||||
| d. | Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | OTHER MOH | |||||
| e. | Production supervisors' salaries. . . . . . . . . . . . . . | IL | |||||
| f. | Jet engines. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | DM | |||||
| g. | Machine lubricants |
An aircraft manufacturer incurred the following costs last month (in thousands of dollars):
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Part 1
Requirement 1. If the cost object is an airplane, classify each cost as one of the following: direct materials (DM), direct labour (DL), indirect labour (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost?
Start by classifying each cost, and then calculate the total for each type of cost. (Enter amounts in thousands as provided in the problem statement. Leave any unused cells blank. Do not enter "0".)
| DM | DL | IM | IL | Other MOH | Period | ||
| a. | Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . . . . . | ||||||
| b. | Depreciation on administrative offices. . . . . . . . . | ||||||
| c. | Assembly workers' wages. . . . . . . . . . . . . . . . . . . | ||||||
| d. | Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | ||||||
| e. | Production supervisors' salaries. . . . . . . . . . . . . . | ||||||
| f. | Jet engines. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | ||||||
| g. | Machine lubricants. . . . . . . . . . . . . . . . . . . . . . . . |
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